The Securities and Exchange Commission announced today that the U.S. District Court for the Central District of California entered settled judgments against John W. Duffell and Charles Yost, two former stock promoters of JDMC Global Corporation, formerly based in Los Angeles.

Defendants Duffell and Yost, without admitting or denying the allegations of the complaint, consented to the entry of judgments permanently enjoining them from committing violations of the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment against Duffell also permanently enjoins him from violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act and orders him to pay disgorgement of $547,264.60, plus prejudgment interest of $218,871.43 and a penalty of $547,264.60. Duffell also consented to the entry of an administrative order barring him from participating in any offering of a penny stock.

The final judgment against Yost orders him to pay disgorgement in the amount of $25,347.50, plus prejudgment interest, but waives payment of disgorgement and prejudgment interest and does not assess civil penalties based upon his sworn representations in his statement of financial condition. The order further prohibits Yost from participating in any offering of penny stock for two years.

The Commission's complaint charged that from June through September 1996, Duffell, 52, of Annecy, France, and Yost, 49, of Euless, Texas, along with the former CEO of JDMC, Robert N. Rooks, 57, of Los Angeles, fraudulently sold JDMC stock. The complaint alleged that defendants disseminated false and misleading information concerning JDMC's financial condition and supposed South African housing project. The complaint further alleged that the defendants' conduct caused JDMC's stock price to skyrocket from $.13 to $4, or more than 3,000%, during June through September 1996.

Previously, the Court entered a final judgment against Rooks, finding him liable for securities fraud and ordering him to pay a $100,000 penalty. The Court also found that Duffell violated the securities registration provisions of the federal securities laws by engaging in an unregistered offer and sale of JDMC stock and directing the company's sales efforts in the United States. In September 1996, the Commission suspended trading in JDMC stock.

In an unrelated Commission action, in 1979, the U.S. District Court for the Central District of California prohibited Duffell from committing securities fraud and securities registration violations. In 1982, in a related criminal action, the court sentenced Duffell to prison for the same conduct charged in the 1979 Commission action.

The Commission wishes to thank the French Commission des Operations de Bourse, the British Columbia Securities Commission, and NASD, Inc. for their assistance in this matter.